IJR Over IWM: Filtering Out The Junk For Better Returns

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Dec. 28, 2025 3:43 AM ETiShares Russell 2000 ETF (IWM), IJRAMO Research432 FollowersCommentsI favor iShares Core S&P Small-Cap ETF as a long-term buy due to its embedded quality filter and lower expense ratio.I rate iShares Russell 2000 ETF a hold, as its recent outperformance is driven by speculative, unprofitable companies unlikely to sustain momentum.IJR's focus on profitable financials and industrials, lower volatility, and higher yield make it a superior core allocation for small-cap exposure.IWM can serve as a tactical trading tool for short-term momentum but requires a proactive exit strategy due to higher risk and expense.syahrir maulana/iStock via Getty ImagesComparing the two BlackRock ETFs dominating the small-cap landscape, it is clear that there is a widening gap between momentum and quality. Recently, the iShares Russell 2000 ETF (IWM) has been an outperformerThis article was written byAMO Research432 FollowersI am a dynamic finance professional with a Master’s in Banking & Finance from Université Paris 1 Panthéon-Sorbonne. My investing background mix corporate finance, M&A, and investment analysis, with a focus on real estate, renewable energy, and equity markets. I specialize in financial modelling, valuation, and qualitative analysis, demonstrated with hands-on roles in private equity, asset management and Real Estate. On Seeking Alpha, I aim to write about companies I find interesting sharing my insights and analysis with a global audience, and to debate my ideas in a will of continuous improvement. Motivated by empowering informed decisions, I’m excited to connect with readers and grow as a thought leader in finance.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments